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The Road to Carbon Neutrality and Net Zero for Port Operations

September 29-30, 2022

AWMA 2022 Freight & Environment Ports of Entry

Thruout: Ports and Air Ports or Maritime and Aviation?

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Climate Change Mitigation: What the Science Says�

To limit earth’s warming to 1.5°C:

Must cut GHG emissions 45% by 2030
Achieve “net zero” GHG emissions by 2050

BAU? Impacts to Ports:

Flooding
Storm Events
Risk to Infrastructure
Risk to Port/Airport operations

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What the science says we need to do to avoid catastrophic warming…

We need deep cuts in global GHGs

Source: https://www.21stcentech.com/cop26-shows-lack-collective-leadership-face-prolonged-future-threat/

Based on work done by the Intergovernmental Panel on Climate Change (IPCC) ….Special Report on Global Warming that global warming must not exceed 1.5°C above pre-industrial temperatures to avoid the catastrophic impacts of climate change (i.e., drought, flooding, resource depletion, conflict and forced migration) and that "those most at risk will be individuals and communities experiencing multidimensional poverty, persistent vulnerabilities and various forms of deprivation and disadvantage." To achieve this, global GHG emissions must be cut in half by 2030 and reduced to net zero by 2050

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Climate Change Mitigation: What the Science Says�

To limit warming to 1.5°C:

Full or near-full decarbonization for energy and industrial CO2 emissions?
Eliminate CO2 emissions associated with agriculture, forestry, and land-use
Deep reductions in non-CO2 emissions from all sectors
Remove CO2 from the atmosphere to residual emissions

Source: IPCC, 2018, Special Report on Global Warming of 1.5°C (SR15)

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Carbon Neutrality

All on-site mitigation must be implemented prior to looking for off-site reductions
Offsets and other off-site mechanisms should be utilized only when all on-site mitigation has been exhausted
Protocols are emerging

Net Zero

Science-Based Targets Initiative (SBTi) has emerged as the leading protocol
No off-site reductions are generally allowed to meet net-zero
Targets need to be consistent with 1.5 C pathway

Terminology

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Air & Waste Management Association’s 112^th Annual Conference & Exhibition

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Maritime Industry

Maritime entities defining GHG targets

Spanning the US and including:

Port of Seattle
Port of Los Angeles/
Port of New York New Jersey
Port of Miami
And others

Emission sources involved:

Ocean-going vessels
Harbor craft
Cargo handling equipment
Locomotives
Heavy-duty vehicles

Image Credits from top to bottom: 1) California Climate Investments, https://www.caclimateinvestments.ca.gov/2022-profiles/advancedtechdemo; 2) San Pedro 2020 Annual Technology Advancement Program, https://cleanairactionplan.org/download/230/annual-reports/5056/2020-tap-annual-report.pdf; 3) Pasha Group, https://www.pashagroup.com/capabilities/pasha-hawaii

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Maritime Industry

Decarbonization Progress

Call to Action for Shipping Decarbonization

Target for Zero emission shipping by 2050
Target to deploy industry-ready zero emission vessels by 2030

Green Shipping Corridors Framework

Enhancing adoption of alternative fuels and new technologies

Technology Demonstrations

Fuel cells, hydrogen fuel, electrification, among other technologies

Improved Guidance

SBTi Draft Guidance on Target Setting for the Maritime Transport Sector
EPA Ports Initiative Resources

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Aviation Industry

Airports of all sizes are actively pursuing carbon reduction projects
Meaningful projects mainly occurring at large-hub airports (more capital $ available)

Seattle-Tacoma
San Francisco
San Diego
Dallas/Fort Worth
Chicago O’Hare
Atlanta Hartsfield

Emission sources:

Central utility plants
Fleet vehicles
Waste management
Construction
Aircraft main engines
Aircraft auxiliary power units
Ground support equipment
Passenger vehicles
Tenant vehicles

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Aviation Industry

Decarbonization Progress

Airlines ramping up production of sustainable aviation fuels (SAF)

Airport Carbon Accreditation (ACA) Program

US DOT Aviation Climate Action Plan

FAA-sponsored research programs for improving engine performance

FAA-funded implementation programs

Airport carbon reduction projects

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Airlines ramping up production of sustainable aviation fuels (SAF)

97% of airport Scope 3 emissions associated with aircraft operations

Airport Carbon Accreditation (ACA) Program

Provides structured and verifiable framework to reduce carbon emissions
Encourages partnerships with Scope 3 emitters (airlines)

US DOT Aviation Climate Action Plan

Net Zero by 2050

FAA-sponsored research programs for improving engine performance

ASCENT
CLEEN

FAA-funded implementation programs

Zero Emission Vehicle (ZEV) Program
Airports Climate Challenge Program (rolling out in 2023)

Airport carbon reduction projects

On-site renewable energy production
Fleet electrification
Central plant upgrades/conversion
Partnerships with tenants for electric vehicles (rental car companies) and GSE (airlines)
Installing EV chargers for passengers
Green power purchasing
Waste management process improvements
Water management infrastructure improvements

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Carbon Tracking

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What is the Science Based Targets Initiative?

A collaboration among…

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What is the Science Based Targets Initiative?

A step-by-step process ending in target validation by the Initiative itself

Targets are officially science-based if…

“…they are in line with the level of decarbonization required to keep global temperature increase below 1.5 degrees C compared to preindustrial temperatures.”

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Global coverage of national net-zero pledges as of November 2021

Source: climateactiontracker.org

Kinda unclear:

Is this associated with this?

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Port Net Zero Commitments

A 2020 study found:

1,565 companies, representing over US$12.5 trillion in revenue and 24.9 million employees, had set net zero targets
Representing 20% of world’s largest companies
A doubling of commitments from the world’s largest 2,000 publicly traded companies, over 2019

Ports with Carbon Neutrality Commitments:

Port of Virginia (Norfolk) by 2040
Port of Houston by 2050
Port of Helsinki by 2030
Many others

Source: New Climate Institute, 2020. Navigating the nuances of net-zero targets

2019 2020

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POTENTIAL Co-Benefits of Carbon Commitments (not all commitments are fulfilled)

Reductions in CO2e correlate to reductions in air emissions, leading to:

Lower PM2.5 ambient air concentrations,
Reductions in cancer risk and risk from other respiratory diseases,
Reductions in ambient noise levels,
Other community health benefits, and
Reputational benefits for reducing community impacts.

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Net Zero Concept #1: Coverage – Port Sources

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Net Zero Concept #1: Coverage Port Sources Example

Emissions Breakdown: Port Operation A

Scope 1 = fuel combustion, large fleet, SF6 from GIE
Scope 2 = office buildings
Scope 3 = supply chain

Purchased goods (e.g., paper)
Capital equipment
Delivery services
Business travel
Employee commute
Waste

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Net Zero Concept #1: Coverage – Ports within “Transportation Sector”

Most targets are focused on Scopes 1 & 2
Scope 3 emissions difficult to measure and challenging to control or influence

Source: McKinsey & Company, 2021. On target: How to succeed with carbon-reduction initiatives

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Net Zero Concept #2: Decarbonization Pathways

Globally, limiting warming to 1.5°C will require ~ 4.2% reduction per year
SBTi net zero standard

requires decarbonization;
limits use of carbon offsets to “residual emissions”

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Net Zero Concept #3: Residual Emissions

Zero

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SBTi’s Net Zero Standard

Robust, science-based framework for setting net-zero targets
Excel-based tools in development for Airports and Maritime
NZ = Commitment to 1.5°C decarbonization path
More than 3,000 have joined SBTi

1,448 with approved targets
1,131 with a Net Zero commitment

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SBTi’s Net Zero Standard - Components

Near term reduction target

1.5°C decarbonization pathway for scopes 1 &2
Cover 67% of scope 3
No use of offsets

Long term reduction target

1.5°C decarbonization pathway for all scopes
Cover 90% of scope 3
No use of offsets

Mitigation beyond the value chain
Neutralization of residual emissions at NZ target year

Use of offsets allowed

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4 main components to a Net Zero pathway – including

Near-term reduction target (see #1); and
Long-term reduction target (see #2)
Taking actual reductions… no use of offsets
Reduction targets must cover at least 95% of scope 1 and 2. and most industries must reduce emissions at an annual rate of 4.2%, considered the economy-wide decarbonization pathway
Companies in the power generation sector and forestry, land-use, and agriculture (FLAG) sectors are required to set SBTs using sector-specific pathways;
Scope 3 requirements differ between the short and long term reduction targets;

For companies with scope 3 emissions that are at least 40% of total emissions, at least 67% of scope 3 emissions must also be covered.

3. Mitigation beyond the value chain – really a recommendation; not a requirement. (there is an FAQ!) It’s an acknowledgement that not every company on the planet is going to set and meet a science-based target; “companies should go beyond their near- and long-term science-based targets to take actions or make investments that support climate mitigation outside of their value chains”

4. Neutralization at the NZ target year: Looking out to 2050, Residual level for most companies is going to be about 10% of what their emissions were in 2016 (economy-wide emissions reduction of at least 90% by 2050)

Neutralization = permanent removal and storage of carbon from the atmosphere; offsets allowed

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Summary of Key Concepts

Maritime and Aviation Industry are engaging recently and rapidly.
All Net Zero Commitments are not created equal as emissions and organizational boundary are key.
Focus on data management and visualization tools and reporting to facilitate course corrections.
Select your approach wisely and document all assumptions.
Understand the co-benefits and the strategic advantage and reputational value of emissions reductions.

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